AGL has lodged a development application with the Regional Council of Goyder to more than double the generation capacity of the Hallett plant to 430 megawatts.

“This proposed expansion of the gas-fired plant at Hallett reflects AGL’s view that demand for peaking power generation capacity will continue to grow in South Australia”, managing director Greg Martin said.

“We expect the Hallett plant to play an important role in helping meet that increased demand and in the process, help stabilise electricity prices in periods of peak electricity consumption.”

Martin said a decision whether to proceed with an expansion of the Hallett plant would probably be made late in 2005.

“The final decision to expand the Hallett plant will be dependent upon market signals for new capacity, a detailed economic evaluation and a stable regulatory environment,” Martin concluded.

The Hallett gas-fired plant was first commissioned in late 2002 and currently has 180 megawatts of installed power generation capacity. A $100 million plus expansion of the plant would bring AGL’s total investment in South Australia to $500 million.